The ever-increasing frequency of cyberattacks is proving to be a huge boon for cybersecurity startups.
According to data from investment tracking firm CB Insights, investors funneled $4.6 billion into companies in the space over the last two years. In the second quarter of 2015 alone, $704 million was invested across 47 deals.
CB Insights found that cybersecurity startups raised $2.5 billion across 224 investments in 2014, compared with less than $1 billion across 108 deals in 2010. Although deal flow declined in the first half of 2015, CB Insights expects the amount of funding for the year to match 2014's total.
From 2010 through the second quarter of 2015, the most active investor in the cybersecurity space was Intel Capital. Kleiner Perkins Caufield & Byers, Andreessen Horowitz, and Accel Partners shared the second spot on the list. CB Insights found that the top six investors each made bets on 10 or more cybersecurity firms during the period. Andreessen Horowitz was the most active early-stage investor, while Google Ventures and Accel Partners shared second position.
Good Technology, a California-based enterprise security software firm, ranked first in funding from 2010 through Q2 2015, raising more than half a billion dollars. In second place with almost $300 million was Lookout, a smartphone-security company. Florida-based OpenPeak, which offers mobile device management software for businesses, was third, raising more than $200 million.